Hi there
I‘m based in Swiss Francs and started investing in S&P500 in October 2024. (80% S&P500 and 20% SMI). On paper the returns are phenomenal but when converting into francs, they‘re negative because of the USD being a weak currency. Seeing this I‘m worried that if a bear market/crash happens in the US that I‘d be completely oofed with two factors pulling down. Should I reallocate more into the SMI (chf) or has it also become overvalued?
thanks in advance.
Swiss SPY investor with negative returns, should I give up on the US?
byu/Ambitious_Honeydew34 inpersonalfinance
Posted by Ambitious_Honeydew34
2 Comments
The Swiss Franc is up 18% over the last year, so it isn’t just the USD weakening. You’re likely seeing similar returns from other international stocks.
Selling out of your international stocks now might lead to you missing a rebound if the Swiss Franc were to come back down.
You can do whatever you want, but the recommendation here is generally “buy everything” which includes a fairly heavy US position since the US is a large percentage of the total world market.
Is there a whole-market fund that operates in your local currency?